A proposal trustee brought a motion without notice seeking approval of interim professional fees and disbursements incurred during the period following the filing of a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act.
The trustee relied on provisions of the BIA and Directive 27R to justify payment before a proposal was filed and without notifying creditors.
The court held that the statutory provisions relied upon did not authorize such payment where no proposal had yet been filed and the trustee was not carrying on the debtor’s business.
The court emphasized that creditors, particularly secured creditors, may wish to oppose the request.
The motion was refused, with leave to bring the request again on notice to creditors.
